AJIBM  Vol.9 No.1 , January 2019
Environmental Dynamics, Financial Flexibility and Enterprise Strategic Change
Abstract: Enterprise strategic change is affected by the external environment, so the research on the relationship between external environment and strategic change has always been concerned by academic circles. Based on contingency theory and resource-based theory, this paper analyzes the influence of environmental dynamics on the strategic change of manufacturing enterprises, and explores how corporate financial flexibility adjusts the relationship between environmental dynamics and strategic change. Taking the 2011-2017 A-share listed manufacturing companies in Shanghai and Shenzhen stock markets as the research object, the empirical results show that: 1) the environmental dynamism is positively related to strategic change—the more dynamic the environment is, the more the manufacturing enterprise inclined to implement the strategic change; 2) financial flexibility positively regulates the impact of environmental dynamics on strategic change. The high level of financial flexibility means abundant resources for strategic change, and the greater the role of environmental dynamism in promoting the implementation of strategic change by manufacturing enterprises. This paper deepens the research on the impact of environmental dynamism on enterprise strategic change, and introduces financial flexibility as a moderating variable, which enriches the theoretical system of strategic change. At the same time, this paper takes manufacturing enterprises as the research object to provide theoretical and practical guidance for Chinese manufacturing enterprises to optimize financial flexible reserve according to the dynamic degree of the environment to successfully implement strategic change.
Cite this paper: Yang, P. (2019) Environmental Dynamics, Financial Flexibility and Enterprise Strategic Change. American Journal of Industrial and Business Management, 9, 124-138. doi: 10.4236/ajibm.2019.91010.

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